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Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Tue 27 Sep 2016, 19:06:39
by ennui2
Hmm.. I thought I heard the cooing of a pigeon chess-player under my ignore filter.

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Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Tue 27 Sep 2016, 20:35:52
by StarvingLion
The National Commercial Bank (NCB) of Saudi Arabia was down 3.5% today hitting new lows just like Deutsche Bank. Gee, I wonder what ennui2 will say..."Its a House of Saud problem"...


Saudi banks' liquidity comfortable in spite of outflows, says Fitch
Al-Arabiya-Sep 26, 2016
LCRs for major Saudi banks, with the exception of NCB, fell sharply in the ... Saudi Arabian banks began reporting LCRs in 2015, and the Basel ...
Saudi stocks tumble on government's austerity measures
Gulf Times-5 hours ago

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Tue 27 Sep 2016, 21:08:17
by StarvingLion
Communist Comrades, We are at the Precipice of ennui2 Imploding Bullshit

Neocon Killary Klinton: "So we’re now on the precipice of having a potentially much better economy"...yeah its called CURRENCY COLLAPSE AFTER OIL COLLAPSE:

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"Oil prices could quickly dive to $40 or lower if OPEC members leave Algeria without any promise of a deal."

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“State aid won’t happen”

Ho Ho Ho!

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Tue 27 Sep 2016, 23:11:12
by SumYunGai
ennui2 wrote:
SumYunGai wrote:The German banking problems didn't happen in a vacuum...Everything is connected


Ah, the always popular fallback of vague correlation = causation. Good old Chris Martenson's Crash Course * dot connecting which is about as funky as Glenn Beck's chalkboard connecting Obama to "bad stuff". Yes, everything's connected.... Is it in a circle--in a hoop that never ends? Nice and catchy and culty. Unfortunately, lacking in cold hard facts.

* Now remarketed as Peak Prosperity because...oil glut.

I did not just suggest that everything is somehow vaguely connected. You are misquoting me. Here is what I actually said, with the part you left out properly restored:

"Everything is connected to the total energy level of the system, which is currently in decline. If the world economy could grow faster, there wouldn't be any German banking problems. And the oil price would rise."

Are you arguing that the economy doesn't need energy?

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 13:36:43
by StarvingLion
The Global Ponzi Scheme is COLLAPSING...

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"...the World Trade Organization dramatically slashed its forecast for trade growth this year by about a third to its lowest rate since 2009"

"The Geneva-based WTO, perhaps best known for dealing with trade disputes, predicted that global trade will rise only 1.7 percent this year, way down from its April prediction for 2.8 percent."

"If the WTO's forecast comes true, it will be the first time in 15 years that global trade grows more slowly than the world economy, which it expects to expand by 2.2 percent."

"As well as reducing its 2016 forecast, the WTO cut its project for next year to between 1.8 percent and 3.1 percent from 3.6 percent."

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 13:43:10
by ennui2
SumYunGai wrote:Are you arguing that the economy doesn't need energy?


No. I'm arguing with your assertion that it's lacking in EROEI at present, like your bogus numbers regarding refining that has been thrown back into your face.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 15:23:15
by davep
OK chaps, kindly avoid the ad homs. We're getting seriously sick of it and will be enforcing more civil discourse more rapidly because otherwise the atmosphere gets too toxic for the majority of users of the site to want to contribute.

And that isn't up for debate.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 16:35:51
by ROCKMAN
pstarr - "Demand has disappeared, permanently killed by $100 oil. This is not a oil glut, but rather a demand dearth." Buddy, I get the GENERAL point you're trying to make but you stumble a tad when you miss pertinent stats. Looking at you Spain consumption chart it seems clear that oil prices played a role. Especially with the slight increase as of late. Which is backed by the FACT that global consumption reached RECORD HIGHS as prices fell. There's are valid points to be made but obviously not "perminnt", right?

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 17:27:46
by StarvingLion
The A.I. Computers control everything including the price of oil:

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"Virtually every "name brand" hedge fund is facing redemptions to the tune of billions of dollars. The retirements of industry legends as well as the wind-down of once invincible firms make the news on a regular basis."

"Leaving aside the fact that the performance simply isn't there, investors are not immune to the shift in society at large toward data-driven decision making. Smart beta strategies and even some liquid alts have taken the "alpha" that was once handcrafted, trade by trade, and have distilled it into a "structured alpha" pursuit using factors, formulas and algorithms to do what was once the province of the emperors"

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OPEC will first raise production, in order to limit production in November...

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 17:28:37
by rockdoc123
Looking at you Spain consumption chart it seems clear that oil prices played a role.


If you ignore the fact that the mortgage/banking crisis in Spain was coincident with the same in the US and was the worst in all of Europe.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Wed 28 Sep 2016, 17:46:17
by ROCKMAN
Doc - As I just pointed out elsewehere to Goner is that in addition to the LONG time lags between oil prices and various economic metrics that make causation analysis difficult are the other events that overlay themselves onto the data. I didn't ignore so much as didn't care to detail ALL the different factors that impacted that chart.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Tue 01 Nov 2016, 12:36:51
by ROCKMAN
Just an interesting tidbit about the non-existent US oil export ban I had not noticed before: during the year (2015) prior to President Obama lifting the "ban" on exporting US oil last January the US exported more crude oil then during any other year in the entire history of the United States of America.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Sat 06 Jan 2018, 08:23:40
by Tanada
BahamasEd wrote:Yes, and by the EIA we are still producing more then we are using so we can't start working off the glut until then balance.

So by their forecast it should balance sometime next year and I would think it would take another year to work down the glut so prices can start to rise again, maybe sometime in 2018.

But the EIA predicts the future about as well as I do.

So I stand by my statement, Oil is not cheap yet, it needs do drop back down into the $20s to clear the market. I think that if the price stays between $45 to $60 then production will continue to out pace consumption

https://www.eia.gov/forecasts/steo/repo ... al_oil.cfm


16 months down the road it looks like the EIA staff was not as wrong as you thought. Prices stayed right in your range for most of that period and the glut has receded considerably due to world economic growth.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Sat 06 Jan 2018, 11:17:21
by onlooker
Quite some time ago, Richard Heinberg was already anticipating this rollercoaster ride in prices in his book "When the Party is Over" But, the important thing to note is that this seesaw effect will get progressively worse so that as both the Oil Industsry and thus the Economy descend ever more, the ability of the oil price to recover ie get higher and of the Economy to get better fizzles out due to energy/economic constraints.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Sat 06 Jan 2018, 11:38:51
by vtsnowedin
onlooker wrote:Quite some time ago, Richard Heinberg was already anticipating this rollercoaster ride in prices in his book "When the Party is Over" But, the important thing to note is that this seesaw effect will get progressively worse so that as both the Oil Industsry and thus the Economy descend ever more, the ability of the oil price to recover ie get higher and of the Economy to get better fizzles out due to energy/economic constraints.

Why would the see saw effect get progressively worse?
I expect just the opposite with each increase in price producing a smaller amount of surplus oil and smaller and smaller gluts with smaller and smaller price swings with each top being a new high and each low being higher then the lows preceding it.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Sat 06 Jan 2018, 11:49:34
by onlooker
So you don't see depletion and thermodynamics working in the background limiting the ability to maneuver economically? In particular these background factors creating Net Energy shortfalls that affect adversely both the Energy Industry and the General Economy

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Sat 06 Jan 2018, 12:27:34
by vtsnowedin
onlooker wrote:So you don't see depletion and thermodynamics working in the background limiting the ability to maneuver economically? In particular these background factors creating Net Energy shortfalls that affect adversely both the Energy Industry and the General Economy

I have repeatedly denounced the ETP thermodynamics mumbo jumbo for the farce that it is.
Depletion on the other hand will happen but will force us to maneuver not limit us. The energy industry will make as much money on the down side of the curve as they did going up and perhaps quite a bit more even in inflation adjusted dollars. Net energy shortfalls? Shortfall from what line. At present we waste a lot of oil because it is plentiful and cheap (relatively) and the first thing we will do is stop wasting it for things like central heating. The general economy will of course undergo changes but it is always changing anyway so this will just be the newest change it has to adapt to. There will be a lot of opportunities for those that seek and find substitutes and new more efficient methods and these new activities will balance out those employed now by wasting cheap oil.

Re: Oil Prices Will Never Recover Pt. 3

Unread postPosted: Sat 06 Jan 2018, 16:13:42
by AdamB
Tanada wrote:
BahamasEd wrote:Yes, and by the EIA we are still producing more then we are using so we can't start working off the glut until then balance.

So by their forecast it should balance sometime next year and I would think it would take another year to work down the glut so prices can start to rise again, maybe sometime in 2018.

But the EIA predicts the future about as well as I do.

So I stand by my statement, Oil is not cheap yet, it needs do drop back down into the $20s to clear the market. I think that if the price stays between $45 to $60 then production will continue to out pace consumption

https://www.eia.gov/forecasts/steo/repo ... al_oil.cfm


16 months down the road it looks like the EIA staff was not as wrong as you thought. Prices stayed right in your range for most of that period and the glut has receded considerably due to world economic growth.


The EIA folks have the appropriate expertise, data and people who can use both. And as I often say, they are also one of the few organizations that didn't jump on the peak oil bandwagon...they knew better. Let's hear it for tax payer dollars paying for folks who actually KNOW stuff.